Emirates Telecom. Group Company (etisalat Group) Pjsc · ADX:EAND
Emirates Telecom. Group Company (etisalat Group) Pjsc — Etisalat Group — Q1 2017 Earnings Presentation
21 slides from Emirates Telecom. Group Company (etisalat Group) Pjsc's earnings presentation, Apr 26, 2017
Slide 1: Etisalat Group 1Q 2017 Results Presentation
Etisalat Group 1Q 2017 Results Presentation 26 April 2017
Slide 2: 1. Business Overview
1. Business Overview Saleh Abdulla Alabdooli Chief Executive Officer Etisalat Group
Slide 3: Etisalat Group Financial Highlights
Etisalat Group Financial Highlights AED Million Q1 2017 Growth Growth YoY% QoQ% Revenue 12,458 -3% -4% EBITDA 6,351 -1% +2% EBITDA Margin 51% +1pp +3pp Net profit 2,091 +5% -6% Net profit Margin 17% +1pp 0pp Capex 1,553 -5% -70% Capex/Revenue 12% 0pp -28pp 1Q2017 Highlights Revenue growth impacted
Slide 4: Q1 2017 Highlights
Q1 2017 Highlights Topline pressure attributed to international operations Financial — Sustained positive growth in domestic market Highlights Improved profitability and cash flow generation On track to deliver 2017 financial guidance Maintained subscribers growth momentum Domestic Revenue
Slide 5: 2. Financial Overview
2. Financial Overview Serkan Okandan Chief Financial Officer Etisalat Group
Slide 6: Etisalat Group Financial Highlights
Etisalat Group Financial Highlights Revenue Breakdown Q1 2017 (AED m) EBITDA Breakdown Q1 2017 (AED m) 24% 24% 4% 3% 8% 6% 12.5 2% 6.4 2% bn bn 61% 65% UAE MT Egypt Pakistan Others UAE MT Egypt Pakistan Others -3% -1% YoY Growth YoY Growth UAE +5% UAE +6% MT Group (LC -3%) -5% MT Group (LC +1%) -2%
Slide 7: Int'l Operations Financial Highlights Q1 2017
Int’l Operations Financial Highlights Q1 2017 Revenue (AED m)/EBITDA (AED m) / Revenue & EBITDA (AED m) / EBITDA Margin (%) EBITDA Margin (%) / YoY Growth % YoY Growth Growth in Maroc Telecom Group 1Q 2017 MAD in AED 46% 43% 42% Revenue 2,967 -5% -3% 63% EBITDA 1,546 -2% +1% 5,480 EBITDA Margin 52%
Slide 8: Group Revenue
Group Revenue Revenue (AED m) and YoY growth (%) Sources of Revenue growth – Q1’17 vs Q1’16 (AED m) 12,937 334 12,853 12,458 12,458 12,853 58 3% 152 617 17 1% -3% Q1'16 Q4'16 Q1'17 Q1'16 UAE MT Group Egypt Pakistan Others Q1'17 Revenue YoY growth % Revenue by Cluster (Q1’17) Highlights Domestic vs.
Slide 9: Group EBITDA
Group EBITDA EBITDA (AED m) & EBITDA Margin Sources of EBITDA growth – Q1’17 vs Q1’16 (AED m) 6,424 6,245 6,351 6,424 240 6,351 11 51% 25 50% 48% 214 84 1Q'16 Q4'16 Q1'17 Q1'16 UAE MT Group Egypt Pakistan Others Q1'17 EBITDA EBITDA Margin EBITDA by Cluster (Q1’17) Highlights Domestic vs. Int’l Inter
Slide 10: Group CAPEX
Group CAPEX CAPEX (AED m) & CAPEX/Revenue Ratio (%) Sources of Capex growth – Q1’17 vs Q1’16 (AED m) 159 5,245 1,639 76 4 22 1,553 41% 347 1,639 1,553 25% 13% 12% 10% Q1'16 Q4'16 Q1'17 Q1'16 UAE MT Group Egypt Pakistan Others Q1'17 CAPEX CAPEX/Revenue CAPEX by Cluster (Q1’17) Highlights Domestic vs.
Slide 11: Group Balance Sheet & Cash Flows
Group Balance Sheet & Cash Flows Balance Sheet (AED m) Dec-16 Mar-16 Investment Grade Credit Ratings Cash & bank Balances 23,676 27,231 Total Assets 122,546 126,298 AA-/Stable Total Debt 22,279 22,710 Net Cash / (Debt) 1,398 4,520 Aa3/Negative (1) Total Equity 55,915 58,595 Net cash position (AED m)
Slide 12: Debt Profile: Diversified debt portfolio
Debt Profile: Diversified debt portfolio Borrowings by Operation Q1 2017 (AED m) Borrowings by Currency Q1 2017 14,973 USD 32% MAD Euro 11% 3,575 41% 2,862 1,300 Others 16% Group MT Group Egypt Pakistan Debt by Source Q1 2017 (AED m) Repayment Schedule 14,421 9,708 7,668 7,426 3,956 1,378 304 560 Bo
Slide 13: Country by Country Financial Review
Country by Country Financial Review 13
Slide 14: UAE: Maintained growth momentum with improved profitability
UAE: Maintained growth momentum with improved profitability Revenue (AED m) / YoY Growth (%) EBITDA (AED m) / EBITDA % 7,874 7,624 7,290 4,011 4,136 3,896 14% 53% 51% 54% 8%% 5% 1% Q1'16 Q4'16 Q1'17 Q1'16 Q4'16 Q1'17 Revenue YoY growth % EBITDA EBITDA % Net Profit (AED m) / Profit Margin (%) CAPEX (
Slide 15: UAE: Steady growth in subscribers base
UAE: Steady growth in subscribers base Mobile Subs (m) & ARPU(1) (AED) Fixed Subs (m) & ARPL(2) (AED) 110 108 158 105 136 145 8.23 8.43 8.60 0.84 0.80 0.79 1.84 1.97 1.99 Q1'16 Q4'16 Q1'17 Q1'16 Q4'16 Q1'17 Postpaid Prepaid Blended ARPU Fixed ARPL eLife Subs – Double & Triple-Play (m) Fixed Broadban
Slide 16: Maroc Telecom: Challenging regulatory and competitive environment
Maroc Telecom: Challenging regulatory and competitive environment Morocco, Benin, Burkina Faso, CAR, CDI, Gabon, Mali, Mauritania and Togo Subscribers (m) Revenue (AED m) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%) 53.1 54.0 54.5 3,119 3,015 2,967 1,023 779 52% 34% 50% 49% 432 25% 15% Q1
Slide 17: Egypt: Performance masked by currency devaluation
Egypt: Performance masked by currency devaluation Total Subscribers (1) (m) Revenue (AED m) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%) 2,214 98 98 1,165 94 307% 24% 24% 24% 722 548 40% 35% 36% 153 229 22% 13% 42% Q1'16 Q4'16 Q1'17 Q1'16 Q4'16 Q1'17 Q1'16 Q4'16 Q1'17 Revenue EBITDA % CAP
Slide 18: Pakistan: Cost optimization initiatives yielding positive results
Pakistan: Cost optimization initiatives yielding positive results Subscribers (m) Revenue (AED m) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%) 24.9 1,028 998 1,010 406 21.9 21.7 34% 35% 41% 32% 212 216 21% 21% Q1'16 Q4'16 Q1'17 Q1'16 Q4'16 Q1'17 Q1'16 Q4'16 Q1'17 Revenue EBITDA % CAPEX CA
Slide 19: Nigeria: Performance impacted by worsening economic conditions
Nigeria: Performance impacted by worsening economic conditions, inflationary pressure and significant currency depreciation Subscribers (m) Revenue (AED m) / EBITDA Margin CAPEX (AED m) & CAPEX/Revenue Ratio (%) 1,083 121 21.8 20.7 19.5 665 663 23% 47 14% 18% 23 6% 4% 4% Q1'16 Q4'16 Q1'17 Q1'16 Q4'1
Slide 20: 2017 Actual Against Guidance: On track for full year guidance
2017 Actual Against Guidance: On track for full year guidance Guidance Guidance 2017 Actual Actual Q1 2017 2017 Constant Q1 2017 Constant Financial KPI In AED Currencies (1) In AED Currencies (1) Revenue Growth % Slightly Lower 1% – 2% -3% +3% EBITDA Margin% around 50% 51% CAPEX / Revenue % 18% - 19
Slide 21: Etisalat Group Investor Relations
Etisalat Group Investor Relations Email: ir@etisalat.ae Website: www.etisalat.com/en/ir/index.jspr 21